Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1887-05-10
The Debt Question.

At the meeting of the Debt Commission
yesterday evening in Richmond Lieutenant
Governor John z. Massey moved that sub
committee be appointed TO furnish the re
port of the Legislative portion Of tho con-
ference and that the committee rise, which
was agreed to-
The subcommittee subsequently agreed
upon report to be submitted 10 the Legis-
lature today. From this report it appears
that the last proposition Of the bondholders'
representatives was that they should have a
principal sum of S2G, SS7 GOO. This amount
was reached by deducting from the debt oil
the State the Riddleberger bonds held by
the State amounting to 81 24O, 900; the bonds
comprised in the literary fund. amounting
to 81 900; bonds held by the Board OF
! Public Works, S163,000; the debt due the
United States Government, 81 500 900, and
further deduction of 81 600 600 being ten
per cent. of the States debt, evidence OF
which they claimed had been lost and for
which no demand would probably be made
in future. In addition they demanded in
cash from the State the sum of 81 1000 600,
being forty per cent of the sixty per cent.
of srrearages of interest on the consol and
10 40 debt. They also demanded that the
new bonds should be exempt from all taxa
ton, State, county or corporation that the
coupons should be tax receivable that all
expenses incurred or to be incurred in con.
nection with the present negotiation and
settlement should be paid by the State, aud
that after the expiration of two years no
bonds should be funded by the State except
with the consent of the council OF foreign
bondholders.
To these demands the legislative commit
tee responded by saying in substance that
the propositions named were wholly unsatis'
factory and would be rejected by The peo-
pie. The CON mittee, however, still anxious
to reach an agreement presented as an ulti
matum on their part the proposition that
the principal of the debt be fixed approx
mately at $50 000,0 600, TO be capitalized upon
terms hereafter to be agreed upon and to
include all the bonds held by the State, the
new bonds to run for fifty years at three per
cent interest. TO be redeemable at the
pleasure of the State after ten years, and
the question Of security to be left open for
further negotiation.
After the receipt of this communication
from the legislative committee, the bond
holders representatives modified their pro-
DOeltlOn so lar Ms W tAClulle tHo JULIUS uciu
by the sinking fund commissioners ,1i9-
O0O), proposing that such bonds should share
with Them their rateable part of the nomi-
nal interest charge of 100000 They fur
Their emphatically declared that they de
clined. once for all, any negotiations that
would involve a reduction OF the capital of
the conso and ten forty bonds so as to bring
the total amount within sos, 600 coo. Their"
upon the legislative committee adopted and
forward 20 the English commissioners the
following preamble and resolution:
Whereas the commission on the part OF the
foreign bondhoders have stated to this committee
that they in substance adhere to the proposition
this day presented by them and have rejected the
proposition made by this committee and declare
the former as their ultimatum therefore,
Resolved, That it be communicated to the COM
mission of the council of foreign bondhoders that
in the opinion of the Joint committee further re-
potiatioi will not tend to final agreement and
that we feel constrained so to report to the Gen
eral Assembly.
The legislative committee will supplement
this report with detailed statement, which
will embody stenographic reports of all the
meetings of the two parties.
Tt is now said that an effort will be made
to pass the constitutional amendment which
proposes to give limited time within which